GM to invest $2.5 billion in Sao Paulo in return for tax favors

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GM to invest $2.5 billion in Sao Paulo in return for tax favors

A Brazilian Newspaper Economico report revealed on Friday, February the 1st, 2019, that the US automaker General Motors Co. had been in talks over investing $2.5 billion in the Brazilian state of Sao Paulo over the next three years in return for tax favors.

In recent pasts, General Motor had been cautioning their employees in Brazil, saying that the sacrifices would be made in order to make the company profitable again, triggering further repercussion of layoffs or shutting down assembly lines.

In fact, it was last month when the company made it public that they had been in talks with public officials of Sao Paulo state regarding tax incentives. According to the report of Valor, the US automaker would continue to invest on their product lines till 2022, and company would start to enjoy the tax discounts from the following year.

Apart from that, the Valor report also mentioned that the GM’s loss in Brazil last year had surpassed 1 billion reais despite being a market leader in the country. However, the report failed to mention the exact amount, General Motor Co.

had been expecting to generate through the tax favors. While asking for comments, the General Motor Co. did not respond immediately.